Question 1

What are the minimum criteria for startups?

Accepted Answer

Before you apply, make sure your startup and the funding round matches the following criterion: 
Looking for seed or pre-series A funding​
Developed a product or service (MVP) that solves customer’s problem​
Started (or starting soon) to generate revenue and have some proven market traction​
Previously solicited FFF (Family, Friends & Founders)​
Already surrounded by a good team​
Valuation: €1.000,000 - €10,000,000​​
Capital Seeking: €200,000 - €2,000,000​​
Preferably located in Europe, but not restricted to​
Startups from any sector ​​

Question 2

What documents do I need to submit?

Accepted Answer

Submit your startup profile for free and be visible to LBAN investors. 
Required Documents:​​
Pitch deck
Complete your deck, by including:
- Product Stage + Road Map (Where are you now and what is next?),
- Current Traction & KPIs, CAC, Churn, …
- Funding Page.
​​​Executive Summary (about customer problem, products & services, target market, business model, customer segments, sales & marketing strategy, competitors, competitive advantage, team)​​​
Financial planning (current & projected figures)​​​​
 
Tips: Be as complete and comprehensible as possible to attract the attention of our investors and raise your chances of being funded.​

Question 3

How should I measure my startup valuation?

Accepted Answer

​When you look at valuations, pay attention to the following elements
Not just about valuation, but also future cash-flow or exit value
Valuation is always a mix of different methods: 
- What you have (asset-based): Replacement Value
- What you have done (current situation)
- Rule of Thumb, Comparable Startups
What you possibly realize (potential): DCF Model, Exit Multiples
Pay attention to which Discount Factor you use (WACC <> RRR)
Other factors: go for smaller and more “don’t jump steps”, Run Way

Question 4

How does LBAN screens incoming deals?

Accepted Answer

All incoming applications are carefully analized by LBAN Investment Committee based on the following elements: 
Problem / Solution / Value Proposition​
Product / Service​
Market Analysis ​
Competitive Analysis​
Traction​
Business Model​
Go-to-Market Plan​
Investment terms​
Team

Question 5

How does the pitching work?

Accepted Answer

LBAN deal-screening is centralized on our deal-flow platform, DEALUM. If selected by the Investment Committee (“IC”), your startup will be invited to pitch to our members. LBAN pitching events take place once a month. Selected startups have 7 minutes to pitch their venture, in addition to 5 minutes reserved for Q&A from our business angels.  
 
Tips: Practice your pitch to stay within the time, address key points, care about storytelling.

Question 6

What are the funding stages at LBAN?

Accepted Answer

Within two weeks of a pitching event, if your startup attracts sufficient interest from LBAN investor community, the LBAN team will facilitate the due diligence process by initiating founder-investor discussions. Note that not all pitches lead to due diligence and/or funding.

Due diligence may last from 3 weeks to 3 months, depending on the business complexity and the funding round timing. Interested LBAN investors can join the due diligence process, which starts with a larger call among all interested investors and founders. LBAN investors will request access to the startup's data room.

If due diligence concludes positively, LBAN members send a term sheet to startup, forming the basis for the final funding negotiations. If agreed, legal work begins. Please note that LBAN pays particular attention to good governance, regular contact with the founder(s) and information rights.

Once the funding round is closed, startups remain in contact with LBAN deal lead and investors, who will provide expertise beyond funding. Our members of many nationalities have significant expertise in many business aspects and between 20 and 25 years of business experience.

Successful deals typically involve 4-10 experienced LBAN members, with group ticket sizes ranging typically from EUR 150k to 350k depending on the sustainability and scalability of the business model, the scale of the problem, the innovation of the solution, the product's market validation and the industry in which a startup is operating.

Keep your profile updated on DEALUM for ongoing funding opportunities.